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Types of Companies Overview
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Types of Companies Overview

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Questions and Answers

What is the legal term used to describe a company's ability to act legally in its own name?

  • Separate legal personality (correct)
  • Limited liability
  • Shareholder protection
  • Incorporation immunity
  • In which type of company do shareholders generally enjoy limited liability for the company's debts?

  • Personal liability company
  • Non-profit company
  • Public company (correct)
  • State-owned company
  • According to the Companies Act of 2008, when does a company become a juristic person?

  • When it opens branches or divisions
  • When shareholders assume personal liability
  • Upon distribution of profits
  • After registration of incorporation (correct)
  • Which case established the principle of separate legal personality for companies?

    <p>Salomon v Salomon</p> Signup and view all the answers

    Which type of company's branches or divisions are considered part of the company itself without separate legal existence?

    <p>Private company</p> Signup and view all the answers

    What did the court affirm in 'Salomon v Salomon' regarding the company's legal identity and shareholder liability?

    <p>'Salomon v Salomon' confirmed the company as an independent person.</p> Signup and view all the answers

    Which type of company prohibits the offering of shares to the public and restricts share transferability?

    <p>Personal liability company</p> Signup and view all the answers

    What type of company is a national business enterprise under the ownership and control of the national executive?

    <p>Private company</p> Signup and view all the answers

    Which type of business entity enjoys juristic personality?

    <p>Public company</p> Signup and view all the answers

    Which type of company is used by professional associations wanting to exploit the benefits of corporate personality?

    <p>Private company</p> Signup and view all the answers

    Which business entity is established in the form of a contract?

    <p>Non-profit company</p> Signup and view all the answers

    Which company has at least one objective related to public benefit or social activities?

    <p>Non-profit company</p> Signup and view all the answers

    Under which legal framework is a private company regulated?

    <p>Companies Act of 2008</p> Signup and view all the answers

    Which type of company is not a state-owned enterprise and is not a private or personal liability company?

    <p>Public company</p> Signup and view all the answers

    Which business entity type does not enjoy separate legal personality?

    <p>Personal liability company</p> Signup and view all the answers

    What is an external company?

    <p>A foreign profit or non-profit operating in South Africa</p> Signup and view all the answers

    Under which law is a state-owned company regulated?

    <p>Common law</p> Signup and view all the answers

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